Time to read : 2 Minutes
Queensland homeowners face paying additional costs for new homes.
Why?
Because the Queensland state government will introduce energy efficiency building reforms from 1 October 2023.
What will the energy efficiency reforms include?
The proposed changes will see new homes required to meet specific energy star ratings. Depending on the home design, this may include added insulation, installation of ceiling fans throughout, plus a redesign of hallways, breezeways and rooms.
How much will the reforms cost QLD homeowners?
The projected additional costs may add up to $20,000 for new homes, once the proposed reforms – set for 1 October this year – begin.
According to Paul Bidwell, chief executive of Master Builders’ Queensland, the timing will mean added stress for homeowners (and the construction industry) already dealing with the pressure of rising interest rates and ongoing cost of living increases.
The expected savings on energy bills for the homes that will be built with better energy efficiency in mind, is expected to be around $185 annually, according to analysis by the Australian Building Code Board.
Public Works and Procurement Minister for Queensland, Mick De Brenni, says the state is determined to meet the 1 October timeframe, although he says that there is the option for an extension on some of the plan’s provisions.
Will other states follow?
Yes.
The reforms are seen as positive and important. It is expected that other states and territories will all follow suit eventually but for now, Queensland is the first to jump.
The Victorian state government postponed the introduction of reforms until 2024, to provide economic relief for both builders and homeowners in light of the current challenges facing the building industry. The transition period in Victoria has been extended to 1 May 2024.
The bottom line
No one doubts that better energy efficiency is a good thing. But with so many households stung by added financial pressures, some industry experts are questioning the decision for these reforms to happen so early.
Better education is needed to inform homeowners about the changes, and why their new build could cost as much as $20,000 extra.
With the reforms projected to deliver energy bill savings of almost $200 per year, homeowners would need to be in their home for 20+ years to break even on the extra initial outlay.
Go deeper: Electricity and gas guides: explained
Financial disclaimer
The information contained on this web page is of general nature only and has been prepared without taking into consideration your objectives, needs and financial situation. You should check with a financial professional before making any decisions. Any opinions expressed within an article are those of the author and do not specifically reflect the views of Compare Club Australia Pty Ltd.